Post
Topic
Board Economics
Re: Is Inflation Necessary
by
lizarder
on 12/06/2024, 11:35:44 UTC
It is needed, it doesn't create problem for the society at a small level, you need to think of high inflation. If you have it at 20% then yeah it's a problem, if you have it something more than that (which some nations do) then it's even a bigger issue, but if we are talking about 2-3% then we are talking about something that is good for the growth and you should have it.

Zero inflation means that there is no growth and that would mean that the nation has a stagnant economy and that would not help anyone, big companies would just earn more money and everyone else would lose. Growth is needed so that big companies would get that growth, and you would get a little bit as well, and everyone would profit from that situation.
If a country experiences stagnation regarding the economic growth of a country then it has a big impact on people's lives because there will be an imbalance that occurs. So that the public sector which is usually a step to support people's lives will have problems, such as food problems and so on. The state has a responsibility for the economic growth cycle and they have ranks to control the prices of goods in the market. What happens is that they do not side with the people and consider more the problems of companies and the problems of the country's economy.

Usually this happens because the government is corrupt and has no vision in managing the country and although in certain cases all countries experience the impact of inflation or recession at an uncalculated stage because certain problems occur. Economic growth is very important because it speaks of a wide scope and if there is no principle to control then the problem will arise bigger.